Problem 3 (9/24) Johnson Corporation acquired all of the outstanding common stock of Smith Corporation...
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Accounting
Problem 3 (9/24) Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $12,200,000 in cash. The book value of Smiths net assets (assets minus liabilities) was $8,800,000. The fair values of all of Smiths assets and liabilities were equal to their book values with the following exceptions:
Book Value
Fair Value
Receivables
$
2,300,000
$
2,000,000
Property, plant, and equipment
9,000,000
10,500,000
Intangible assets
300,000
1,400,000
Required:
Calculate the amount paid for goodwill.
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